Durham Police said officers at the Central East Division station in the area of Center Street North and Bond Street West heard a loud bang shortly after 8pm and found a vehicle on fire outside.
Witnesses told officers they saw a person throw an incendiary device at a parked car before it exploded, police said.
A short time later, officers located the suspect and a short pursuit ensued.
Police said the suspect was later arrested.
No one was injured in the explosion, while other buildings and vehicles were not damaged.
Police said an explosives disposal unit rushed to the scene and cleared the area.
On Friday, police identified the suspect as Duy Quoc Nguyen of Oshawa. He was charged with arson causing property damage, possession of incendiary material, unlawful possession of explosives, disorderly conduct/endanger life, disturbance/property damage over $5,000 and driving under suspension.
Police said he was held for a bail hearing.
It was the third incident in the greater Toronto and Hamilton area involving an incendiary explosive device. On June 22, a 19-year-old man was charged for allegedly detonating an improvised bomb at a shopping center in Newmarket.
Four days later, police said a man with an explosive device caused a brief evacuation of a Hamilton neighborhood. He was arrested and charged.
No injuries were reported in the two separate incidents.
